Agenda item

RESOLVED:

That the report be noted, including the following:

1.      That the forecast revenue budget outturn for 2016/17 was a £6.0m overspend, as set out in the Annex, paragraph 1 to the submitted report.

2.      That forecast efficiencies and service reductions for 2016/17 were £75.8m, as set out in the Annex, paragraph 30 to the submitted report.

3.      The revised budgeted full time equivalent staff numbers, as set out in the Annex, paragraph 25 to the submitted report.

4.      The revised fees and charges for: cycle training, set out in the Annex ,paragraphs 38 to 40 and traffic signal switch out, set out in the Annex,paragraphs 41 to 43, to the submitted report.

Reasons for Decisions:

This report is presented to comply with the agreed policy of providing a monthly budget monitoring report to Cabinet for approval and action as necessary.

[The decisions on this item can be called in by the Council Overview Board]

The Deputy Leader presented the budget monitoring report for the first five months of the 2016/17 financial year, covering the period up to 31 August 2016. He said that this year Services forecast delivering £76m of their efficiencies. However, the overall forecast was currently for a £6.0m overspend at this year end. He said that this year, there had been very considerable and increased demand for Adult Social Care and Children’s Services and the cost of providing the services was beginning to outstrip the targets.

He said that the next item on this agenda was a report on financial sustainability and budget planning for the five years to 2022. The scale of the challenge set out in that report reinforced the importance to the Council of achieving the savings Cabinet had planned.

On revenue, he said that the current forecast end of year revenue position was, as mentioned earlier, for a £6.0m overspend and therefore, that it would not be easy to produce a balance outcome this year. The overspend included a £10.7m forecast overspend in demand led social care services for adults and children. This was partly offset by £2.6m more income from business rates and reduced interest charges and £0.9m underspend on schools and SEND transport.

On efficiencies he said that at the end of August, Services forecast delivering £76m of their £83m total efficiencies and of the £76m forecast efficiencies, £47m has either already been implemented or was on track, £19m had some issues, and £10m was considered to be at risk.

Finally, on Capital, he said that the Council’s£638m capital programme for 2016-21, improved and maintained services, invested in Surrey and generated income for the Council. He said that the 2016/17 capital budget had been revised and re-profiled in July and forecast making £151m capital investment in the Council’s services this year. He considered that the reduction of reliance on government grants and council tax was a help to balance the budgets over the longer term and that the Revolving Infrastructure & Investment Fund was part of this strategy.  

Other Cabinet Members were given the opportunity to highlight key points and issues from their portfolios.

RESOLVED:

That the report be noted, including the following:

1.      That the forecast revenue budget outturn for 2016/17 was a £6.0m overspend, as set out in the Annex, paragraph 1 to the submitted report.

2.      That forecast efficiencies and service reductions for 2016/17 were £75.8m, as set out in the Annex, paragraph 30 to the submitted report.

3.      The revised budgeted full time equivalent staff numbers, as set out in the Annex, paragraph 25 to the submitted report.

4.      The revised fees and charges for: cycle training, set out in the Annex, paragraphs 38 to 40 and traffic signal switch out, set out in the Annex, paragraphs 41 to 43, to the submitted report.

Reasons for Decisions:

This report is presented to comply with the agreed policy of providing a monthly budget monitoring report to Cabinet for approval and action as necessary.